Sumary of South Korean Regulators Warn Dozens of Foreign Exchanges to Comply With New Rules:
- Overseas crypto exchanges marketing to Koreans will be blocked if they fail to comply with new South Korean regulations.
- The country’s anti-money laundering body has sent a notice to a number of foreign trading platforms warning them a registration is mandatory in order to provide services to Korean residents.
- Korean Financial Intelligence Unit Notifies Foreign Crypto Exchanges of Registration Obligations Access to foreign-based cryptocurrency exchanges can be denied and the platforms may face criminal investigations in South Korea if they don’t comply with the country’s new regulations for the sector.
- One of the key requirements is to register with the Korean anti-money laundering agency, the Financial Intelligence Unit (FIU), by Sept.
- 24. To remind them of their obligations, FIU has sent out a notice to 27 entities with crypto trading operations targeting Korean nationals, the Financial Services Commission (FSC) announced Thursday, quoted by the Korea Herald.
- The regulations adopted earlier this year also require exchanges to have information security certificates, but none of them has obtained one yet, officials said.
- The commission emphasized that foreign exchanges shall cease business operations in Korea as of Sept.
- 25 unless they register with the FIU. Unregistered activities will lead to penalties, including up to five years of imprisonment and a fine that can reach 50 million Korean won (over $43,000).